Hosted IP PBX Overview: Capabilities, Benefits and More

Hosted IP PBX Overview: Capabilities, Benefits and More

Hosted IP PBX is a particular type of phone system software that lets companies make phone calls over a data network. Such software is highly scalable in its implementation, and you don’t need to purchase phone lines in place for the service to work – the hosted IP PBX hardware is wholly owned and operated by the hosting company.

Hosted IP PBX is compatible with most computers and works with broadband, local area networks, and WAN connections. All you have to do is plug the IP phone into your modem or router, and you will gain access to the hosted IP PBX phone network. You can also use a wireless router to connect each phone with a standard ethernet cable.

Similar to the benefits of VoIP, the hosting company also manages the hosted IP PBX service, so you don’t have to worry about complex on-site hardware or systems administration. The hosting company makes any updates or changes to the system remotely, so your business always has the latest features and capabilities.

Benefits of Hosted IP PBX Systems

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Lower upfront costs 

No need to purchase expensive hosted IP PBX hardware or pay for professional installation. The beauty of hosted IP PBX is that it allows businesses to make and receive calls without worrying about the quality or reliability of their internet connection. Although overall call quality may depend on the different types of VoIP codecs used, the rings are still delivered over a private, secure network that is optimized for voice traffic.


The hosted IP PBX system can easily be scaled up or down to accommodate your changing business needs. You can have voicemail, extension dialing, caller identification, and predictive dialing features that let you call multiple phone numbers at once. Other standard options include conference calls between five or more people and a password protection system for added security.

Reduced maintenance

The hosting company fully manages hosted IP PBX systems, so you don’t have to worry about complex on-site hardware or systems administration. This type of phone system is generally considered dependable since it tends not to have a single point of failure. The hosting company will usually have redundant servers and databases set up at a centralized location so that an unexpected hardware failure won’t bring the phone system down. You also don’t have to perform maintenance on the equipment since the hosting company automatically does that for you.

Reservations Surrounding Hosted IP PBX Systems

Some businesses avoid hosted IP PBX because they think it’s more expensive than a traditional phone system. However, the truth is that it can save you money in the long run – especially as customer experience is enhanced by handling customers better over the phone. 

You don’t have to worry about buying or leasing expensive hardware, and there are no installation costs since everything is done remotely by the hosting company. In addition, your monthly bill will be lower since you only have to pay for the service – there are no added charges for features or long-distance calls.

If you’re looking for a reliable and affordable phone systems solution for your business, hosted IP PBX is worth considering. The scalability, features, and cost savings make it an excellent option for small businesses, large businesses, and everything in between.

Key Capabilities of Hosted IP PBX Systems


Features offered by hosted IP PBX aren’t limited to a specific location. If you have employees who work from home or travel regularly, they will still be able to transfer phone calls and put customers on hold. This mobile versatility also applies to companies that have branches in different cities.

Unlimited extensions and users

Hosted IP PBX also tends to be highly flexible in the number of extensions a business can possess. Most hosted IP PBX vendors allow you to have an unlimited number of users who can be added or removed at any time. Some hosting companies charge on a per-user basis, but this still tends to be cheaper than a traditional PBX.

The scalability of hosted IP PBX is one of its defining characteristics. Whether you have five employees or 500, the system can be easily configured to meet your needs. If your business grows, you can add more users – there’s no need to buy a new hosted IP PBX or upgrade your service.

Integrations with other applications

Hosted IP PBX can be easily integrated with other business applications. For example, you can use it in conjunction with VoIP or SIP trunking, or even add it as part of an enterprise Unified Communications system. This flexibility is essential for businesses that want to keep their options open or who may need to change their phone solution in the future. Such scalability, features, and cost savings from hosted IP PBX therefore makes it an excellent option for small businesses, large businesses, and everything in between.

Softphone/virtual phone

Hosted IP PBX has softphone capabilities which let you use your computer as a telephone. As long as you have a headset or microphone and a good set of speakers, you should be able to make and receive phone calls through the system. This can help to save money during the initial setup phase since you won’t necessarily have to purchase IP phones for every employee.

How to Select the Best Hosted IP PBX System for Your Business

Hosted IP PBX is a reliable and affordable phone solution that offers several benefits for businesses, and is worth considering if you’re searching for a phone systems solution. Before you decide which hosted IP PBX capabilities you need to select, it is useful to conduct a detailed business assessment. 

Gathering relevant staff from across your organization and asking them questions about the problems they face with existing communications systems can pave the way towards building a business assessment, which can then be shared with prospective hosted IP PBX vendors for discussion. 

Viewing demos as you rank phone systems vendors can then help you and your team decide which capabilities will solve existing problems pertaining to your phone system, so you can correctly shortlist only the best hosted IP PBX vendors to embark with on a long-term and fulfilling partnership.

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